Already an established force in the United Kingdom, Purplebricks has brought their revolutionary flat fee real estate model to Aussie shores.
Are you interested in a flat fee model rather than paying expensive commission costs? Purplebricks has it covered. Need a dedicated Local Property Expert to help you? Purplebricks has that sorted too. Do you want access to 24-hour technology and support? It's all part of Purplebricks flat fee selling model.
As a Sydneysider, real estate is a regular topic of conversation with family and friends, and someone inevitably laments on how rapidly prices are rising and the big fees involved in selling. Sydney’s median house price ($852,000) is now 75 per cent higher than Brisbane’s ($486,000) and a third higher than Melbourne’s ($641,200) and reportedly rising by $10,000 a month.
So naturally we are paying higher commissions in Sydney relative to other major cities, and by a fair margin too. What are the experts saying on the topic of real estate fees?
“According to the latest ABS figures, in the year 2016 up to the September quarter, there were 445,000 properties sold in Australia with an average value of $631,000, which equates to approximately $281 billion in sales," says leading economist Stephen Koukoulas in his independent report titled ‘Real Estate Agent Fees and the Case for Disruption’.
“Based on an average real estate agent selling commission of 2.2 per cent, the cost to homeowners of selling their dwelling was $6.18 billion. That is approximately $118 million a week in agent commissions, without accounting for the marketing costs that each homeowner is charged on top of the commission fee.
"By moving to the Purplebricks flat fee model of just $5,500 to sell and market a home, homeowners could contribute up to $4.8 billion a year back into the economy which would be a welcome boost to any Australian household.”
Purplebricks is offering more than just a flat fee price to sell and market your home. They also advertise on the two biggest online real estate listings in Australia realestate.com.au and domain.com.au, and they have a customer portal and 24/7 support, which is very different to what we are used to from traditional high street real estate agencies.
I browsed their website and came across a handy interactive tool which estimates how much you could save by using Purplebricks, based on your selling price and the commission percentage. Have a look at it here. There is also a neat comparison between Purplebricks and traditional real estate agencies.
In just four months in Australia, Purplebricks has sold or exchanged on 150 properties across Melbourne, Brisbane, the Sunshine and Gold Coast and saved Australians an estimated $1.7m on agent commissions and marketing costs.
Here’s what Purplebricks have to say about their entry into the Sydney market.
"Until now, Sydneysiders selling their homes have been paying too much, for too long, for too little,” says co-founder and CEO Michael Bruce. “Having made a clear difference to sellers very quickly across real estate in Melbourne and Brisbane, it’s high time that residents in Sydney were given the first ever alternative to wasting thousands of dollars in commission and separate marketing costs.”
They have compiled real life case studies of customers who have saved thousands of dollars using their flat fee model.
Heidelberg Heights (Melbourne) - AUCTION
- Homeowner Tanya Elsegood listed her property with Purplebricks through her Local Property Expert for the area Prudence Jones
- The reserve price was $765,000 and the property quickly sold at the first auction for $787,000
- Tanya saved over $15,000 thanks to Purplebricks
Mudgeeraba (Gold Coast) - PRIVATE TREATY
- Homeowner Police Officer Phil McEwan listed his property with Purplebricks through his Local Property Expert Aaron Lau
- The list price was $549,000 and the property quickly sold at the first open house viewing for $545,000
- Phil and his wife saved approximately $10,487. The property was on the market for just 3 days before it sold
Next generation real estate agency Purplebricks is transforming the way people perceive estate agents and estate agencies.
Established in the UK in 2014 by co-founders Michael and Kenny Bruce, in less than three years Purplebricks has grown to become the third biggest estate agent in the UK, now selling a property every 16 minutes and organising a viewing every 90 seconds, 24/7.
The business is probably the most positively reviewed real estate agency in the world with over 11,000 independent customer reviews providing an average rating of 9.4 on Trustpilot.com (9.5 in Australia). After a successful stock market floatation in December 2015, Purplebricks is now valued at £390m ($644m AUD) correct as of 11th January 2017.
Launched across Melbourne, Brisbane, the Sunshine and Gold Coast at the end of August 2016 with Ryan Dinsdale as Australia CEO, Purplebricks Australia offers Australians a more cost-effective and fairer way to sell their home than using the traditional model, through personal service, technology, trust and transparency.
The service combines highly experienced, professional and fully licensed Local Property Experts, technology and a Central Property team available 24/7 to help make the process of selling more convenient, transparent and cost effective. Local Property Experts work remotely without expensive office overheads and leads are provided to them.
In NSW for a flat fee of $5,500 (including GST) a Purplebricks Local Property Expert will sell a home via private treaty (sale). This flat fee includes a dedicated Local Property Expert, advertising on Purplebricks.com.au, Realestate.com.au and Domain.com.au, floor plans, a property description, professional photography, a ‘for sale’ board, a sales support team, 24/7 support and a dedicated ‘My Purplebricks’ area of the website containing up to the minute information about the sale of the property.
For NSW homes that go to auction, a small additional fee of $1,100 (inc GST) is charged on top of the $5,500 flat fee to cover the cost of an auctioneer and all private viewings and open homes carried out by the Local Property Expert.
This is a sponsored post.